Rising Middle East tensions and inflation fears triggered risk aversion, halting the S&P 500’s winning streak in Q1 2026.
The S&P 500 snapped a three-quarter winning streak in Q1 2026 as escalating Middle East tensions fueled risk aversion, driving energy prices higher and stoking inflation concerns. Initial support from strong corporate earnings and falling bond yields proved short-lived amid the geopolitical uncertainty.
Impax Asset Management’s US Sustainable Economy Fund underperformed the Russell 1000 benchmark during the quarter, largely due to its lack of exposure to the surging Energy sector. The firm noted a shift toward investments in renewables, grid improvements, and energy-efficient technologies as markets prioritize security and efficiency.
S&P Global (SPGI) closed at $416.71 on May 28, 2026, posting a one-month return of -1.50% as investor sentiment softened.